Recent figures from the Office for National Statistics (ONS) have shown that the UK inflation rate fell last month to its lowest levels since February 2010; as a result of the slowdown in transport price rises and the timing of Easter.

The figures show that the Consumer Price Index (CPI) measure fell from 3.5 percent to 3 percent – its lowest figures since February 2010, when it was also at 3 percent – whilst the Retail Prices Index (RPI) also fell, from 3.6 percent to 3.5 percent, for the same period.

Following the release of the latest inflation rate figures, the Chancellor, George Osborne said that it was “a welcome relief to families with high budgets” adding: “The Bank of England expects the inflation rate to fall in the next year or so.”

His comments were partly supported by the TUC general secretary, Brendan Barber, who agreed that the slower rate was "a relief to millions of people", but added that pay was still lagging behind.

Mr Barber said: “With earnings growing by just 0.6%, people are still getting poorer every month.

“We need falling inflation to be matched with far better pay rises to get people's incomes growing again. This will only happen when our economy is moving in the right direction.”

The drop in inflation rate, according to the ONS is partly as a result of the timing of Easter, whilst the cost of clothing – especially womenswear – and alcohol bought in off-licenses is also said to have helped contribute to the lower rates.